The component of imported and finished pharmaceutical products in Pakistan is less than 15%, indicating that the majority of products sold are manufactured within the country. PHOTO: FILE
LAHORE:
The pharmaceutical industry of Pakistan has been facing a crisis for years and several multinationals that have invested millions of dollars in the country have been either forced to shut down or limit their operation due to the absence of a proper regulatory environment.
However, the Pharma Bureau Pakistan, a representative body of the research-based multinational companies (MNCs) operating in Pakistan, still has a positive outlook for the future — more so after the government’s commitment to address the socio-economic challenges. But, the body requires assurance and a framework from concerned authorities.
Several multinational companies have left the country after working here for decades, prompting serious concerns and particularly at a time when the government is eager to encourage foreign investment in the country, said Pharma Bureau Chairman Shahab Rizvi while addressing the Pakistan prime minister via a letter.
“We remain optimistic and we see this sector developing into a strong contributor to the economy of Pakistan, but for that it is important that the government must not fall prey to misleading reports and have a clear picture of the industry,” Rizvi said.
The total market of registered pharmaceutical products in Pakistan is estimated at $2.2 billion, out of which the share of MNCs is 42%, Rizvi said.
He further stated that the companies have large local manufacturing operations and continue to invest in capacity, quality enhancement projects as well as human resources in their local manufacturing operations.
In addition, the prices of most MNC drugs in Pakistan are lower than India and Bangladesh. The component of imported and finished pharmaceutical products in Pakistan is less than 15%, indicating that the majority of products sold in Pakistan are manufactured within the country. Local manufacturing operations of MNCs include their respective global brands, claimed Rizvi.
“The per unit average price of products sold by local companies is higher than that by MNCs,” he said
It is unfortunate that during the past few years a number of global pharmaceutical companies have shut down their operations in Pakistan due to the unpredictable regulatory environment faced by the industry.
A report published by McKinsey Consultants in 2010 identified Pakistan’s pharmaceutical industry as one of the three industrial sectors that could, with the right reforms and regulatory framework, help the country’s economy. It could help boost exports, increase domestic production, bring in much-needed Foreign Direct Investment (FDI) (together with transfer of new technology in manufacturing and supply chain) and expanding employment opportunities for the country’s youth, he said.
It needs to be understood that MNCs act as a tool that helps bring innovative, research solutions from developed countries to a developing country like Pakistan for the benefit of patients suffering from life threatening diseases, Rizvi said.
The government should ensure that this industry realises its potential by devising manufacturing-friendly policies and providing a conducive environment which would in turn help the government revive the national economy, he added.
Published in The Express Tribune, April 4th, 2014.
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